The HM Treasury has revealed its 15 point plan that the Government will implement to boost the UK’s productivity growth. The productivity plan is centred around encouraging long-term investment and promoting a dynamic economy.
In relation to the UK financial services sector, the plan refers to the following points:
- In setting the 2015 remit of the Financial Policy Committee (FPC), to ensure the supply of finance to productive investment, to competition and innovation and to the competitiveness of the financial services industry.
- The PRA and FCA have agreed to establish a joint New Bank Unit to help new, prospective banks to enter the market and to support them through the early days of authorisation. After three years, the PRA and FCA will undertake a review of the effectiveness of the unit to ensure it is working in the best interests of new banks.
- Launching an international “FinTech” benchmarking exercise in the autumn to track how the UK ranks against international competitors.
- In order to ensure regulation remains proportionate and regulators support effective competition, issuing remit letters to the PRA and the FCA identifying those aspects of government economic policy that are most relevant to the regulators' duties. Its objective is to outline the government’s priorities for increasing competition and, for ensuring that the UK remains an attractive location for financial services businesses, and for securing London’s role as the leading international financial centre.
- The PRA and FCA will both be required to publish annual reports on how they are delivering against their respective competition objectives across financial services, to set out clearly the steps being taken to drive more competition and innovation and to help ensure that the right incentives exist for new banks to enter the market.
- Implementing a long term plan for the taxation of banks, giving stability and sustainability and securing competitiveness, as announced in the July 2015 Budget.
- Appointing Jayne-Anne Gadhia, CEO of Virgin Money to lead a review into representation of women in senior managerial roles in the financial services industry.
The plan can be read in full here.